You're wasting time and money! Here's how to manage time like a billionaire:

Only 4% of your activities each day drive your business forward and move the money needle. The other 96% of the things still have to get done, but they shouldn't get done by you.

The 4% Rule For Moving The Money Needle

This really became clear to me when I learned about Vilfredo Pareto.

Pareto was an Italian economist who became famous for his 80/20 rule.

This is now commonly called the Pareto principle.

He first discovered this rule when he found that 80% of a nation's wealth was controlled by 20% of the population.

And as he studied this phenomenon more deeply, he found a disproportionate relationship between cause and effect in other areas of life, including real estate, growing crops, and all sorts of things:

20% of the input creates 80% of the result.

20% of the workers produce 80% of the result.

20% of the customers create 80% of the revenue.

20% of the roads cause 80% of the crashes.

And on and on...

In my deep dives into marketing psychology, I've found his 80/20 rule to hold true for almost all areas of business, including...

• Popularity of products.

• Sources of incoming leads.

• Customer service problems.

• Reasons customers buy.

• Activities in your business that produce revenue!

And while you might have heard about the 80/20 rule, most people never truly apply it to their business let alone other areas of their life.

In business, the little stuff kills the big stuff. What I mean is that there are lots of small, nit-picky things in your business constantly screaming for attention, but these aren't the tasks that produce revenue.

The 80/20 rule demonstrates you can and should disregard 80% of your business activities. They should either be delegated or outsourced so you can focus on the top 20% that produce revenue.

Once you've done this in your business, you need to take it one step further and truly become a high-performance entrepreneur.

You see, you should apply the 80/20 rule to the 80/20 rule itself.

That is to say, 80% of the 80% of the revenue comes from 20% of the 20% of your revenue-producing activities.

To put it more simply...

4% of your activities create 64% of the revenue in your business.

In a friends business, after cutting out the 96% of his activities that produced little or no revenue, this is what the top 4% revenue-producing activities looked like:

Revenue-Producing Activities

• Writing sales copy

• Coming up with offers & promotions

• Creating sales funnels

• Shooting videos

• Doing webinars

• Scheming & plotting

Because these 4% of activities literally bring in 64% of all the revenue for his business, he hired an operations manager and other team leaders to do all the other things that don't move the money needle.

Sadly, here is where most entrepreneurs and top employees mess up.

Instead of investing their time exclusively in their super-productive 4%, too many business owners and salespeople get caught up in the minutiae of the day-to-day 96%.

All day long, they go from putting out one fire to another, never having a chance to invest time working on the 4% that moves the money needle and propels their business forward.

So what are your top 4% revenue-producing activities?

Are they creating new offers?

Motivating sales staff?

Increasing lifetime customer value?

Whatever it is, you need to figure it out.

And once you've put together a list of these vitally important revenue-producing activities, it's time to get to work and start automating and creating systems for just about everything else.

You shouldn't invest your time in boring, low-value tasks.

Because every minute you spend on low-value tasks or putting out fires is time taken away from the areas of your business that have the most leverage and the largest potential to make you money.

Action Points:

• Make a list of all of your business activities.

• Conduct an 80/20 analysis of these activities.

• Create an action plan to help you delegate, automate or outsource the 80% of your activities that don't produce revenue or move your business forward.

• Then take it one step further and invest your time only in the 4% of activities that bring in the most revenue.

Hope this helps.

Talk soon,

Maurice